Pacific Capital Bancorp Announces Sale

Pacific Capital Bancorp announced today that they are selling their Indirect Auto Financing portfolio to Wells Fargo. The auto loan package will give the bank somewhere around $222 million from the sale of the portfolio. The car loan portfolio being sold is 100% of the bank’s net investments.

Pacific Capital will be recording a loss on sale of almost $1 million in the second quarter of the year from the sale of the auto loan portfolio. The company says that they are trying to mix up the things that they offer, and therefore they will be able to offer more choices to their customers. By eliminating that auto loan portfolio, they will have more leverage to do that.

They plan on using the capital from the auto loan sale to purchase other investments for their shareholders and “create greater value” for them. The company have $7.4 billion in assets, and is the holding company for Pacific Capital Bancorp, N.A. They have several branches in California where they do business.

They are also selling their Commercial Equipment Leasing and Financing business to LEAF Funding, Inc., LEAF Financial Corporation, and LEAF Commercial Finance Co., LLC. They will be getting somewhere in the area of $280 million from that sale, and it is 105% of the bank’s net investment in their Commercial Equipment Leasing portfolio.

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